Other Colleges & Universities - Children

Last Updated: 02/17
Applies to Faculty and Staff

Policy

Children, step-children and children under legal guardianship of faculty and staff employed by the University of Notre Dame who meet the dependent verification requirements and standard admission requirements to an accredited four-year institution may receive an annual portable educational benefit for undergraduate education.

Fall and Spring Classes

Full-time Students

The total amount of the annual portable educational benefit for each child who is enrolled as a full-time student is the lesser of:

the tuition and mandatory fees of the other institution, or

50% of Notre Dame’s tuition.

The educational benefit for full-time students (12 credits or more) is the lesser of (a) 8 semesters or (b) if the child previously attended college, the standard number of semesters needed to complete a four-year undergraduate degree based on the class level (e.g., second-semester sophomore, first-semester senior) assigned by the Registrar of the college the child is attending at the time of eligibility and application of the benefit.

Part-time Students

The total amount of the annual portable benefit for each child who is enrolled as a part-time student (less than 12 credits) is the lesser of:

the tuition and mandatory fees of the institution, or

40% of Notre Dame’s tuition.

The educational benefit for part-time students (less than 12 credits) is the lesser of (a) 10 semesters or (b) if the child previously attended college, the standard number of semesters needed to complete a four-year undergraduate degree based on the class level (e.g., second-semester sophomore, first-semester senior) assigned by the Registrar of the college the child is attending at the time of eligibility and application of the benefit.

Without exception, grant payments are made in equal installments directly to the institution and are made by semester, trimester or quarter, whichever is applicable. The amount paid is based on certification received from the institution each term. Once an eligible student enrolls on a part-time basis they must remain enrolled part-time to receive the maximum of 10 semesters of eligibility. If a part-time student enrolls on a full-time basis then they are eligible for a maximum of 8 semesters.

Each child is eligible only for the benefits described, regardless of whether one or both parents are employed at the University.

Mandatory fees are fees charged to all students and do not include room and board, books or any fees specific to a course, major or program.

Historical policy note: Prior to July 1st, 2009, the benefit for a full-time student was 30% of Notre Dame’s tuition and 24% for a part-time student.

Eligibility

Prior to July 1, 2009, parent must be a regular, full-time, faculty or staff member who has completed a minimum of 10 years of consecutive full-time employment, or retired with 25 or more years of consecutive full-time employment at Notre Dame.

As of July 1, 2009, parent must be a regular, full-time faculty or staff member who has completed a minimum of five consecutive years of full-time employment, or retired with 25 or more years of consecutive full-time employment at Notre Dame.

The five years of consecutive full-time employment requirement or a portion thereof may be waived for all eligible faculty or staff after July 1, 2009 if both of the following apply:

The faculty or staff member became employed in a regular full-time position at Notre Dame within 90 days of leaving regular full-time employment at an accredited four-year university or college, and

The faculty or staff member provides a statement from the prior university or college as verification of prior service

Qualifying regular, full-time faculty or staff must remain in full-time employment of the University after the child has been admitted to the attending College or University.

Children may receive the education benefit if the eligible parent dies or becomes totally disabled regardless of whether the child was receiving the benefit at the time of death or disability.

Student must be 26 years of age or younger.

The benefit may continue past the age of 26 if the child is currently enrolled in an eligible program, presently using the benefit and has not yet utilized the full benefit. Once a child is over the age of 26, they must continue to take courses each period (semester, trimester, quarter), except summer unless required by the institution, in order to maintain their eligibility. If there is a break in college attendance, the child will lose their eligibility permanently, regardless of any unused benefit balance.

Procedures

The student must apply and be admitted to the College or University. The faculty or staff member must complete and submit an Application for Educational Benefits form as follows:

Additional Program Information

The college or university must be a four-year institution and must be an accredited college or university. Notre Dame’s reference source for determining if the institution meets that criteria is the College Board (www.collegeboard.org).

All tuition grants or scholarships provided from any other source are deducted from the total tuition before computing the University’s grant.

Children must meet the dependent verification requirements prior to receiving the benefit and provide documentation demonstrating that the requirements have been met. The verification documentation must be available throughout the time the benefit is received.

If your child discontinues attendance and the total educational benefit amount awarded for that period (semester, trimester, quarter) is not repaid in full to the University of Notre Dame by the parent, prior to the close of the academic year (June 30th) that period will count as one full-time period and will be used against the total number of semesters of which the child is eligible.

It is the faculty or staff member’s responsibility to confirm with the institution their child is attending that the educational benefit has been received and applied to the proper term. Any corrections and/or additions needed must occur in the same academic year and must be completed prior to the close of the University’s fiscal year, June 30th.

If summer is the first time the student is receiving the portable benefit, it will count as a full semester used.

If the maximum tuition amount has been paid during the academic year, there is no portable benefit available for the summer.

Tax Information

The University will treat the child’s educational benefit as taxable to the parent if the child is not considered a ‘dependent’ according to IRS regulations under the conventional “Qualified Dependent” definition. The tuition benefit will be added to an employee’s taxable income and taxes withheld beginning with the year the employee’s child turns age 24.

For planning purposes, an alternative “Qualified Relative” dependent definition can be applied if all three criteria are met:

Parent provides more than ½ of child’s support for the year,

Child’s gross income will be less than the annual personal exemption amount ($4,050 in 2017), and

Parent will claim child as a dependent on current year’s Federal Income Tax return.

At the end of each calendar year, participants in the tuition benefit program with children age 24 or older will receive communications about the “Qualified Relative” criteria. Those able to attest to meeting all three criteria may have the tuition benefit reclassified as non taxable.